PRI 2023 Assessment
methodology for investors
December 2023

-RESPONSIBLE

INVESTMENT-This presentation is being provided to you by PRI Association (“the PRI”) and its subsidiaries for information purposes only. The presentation is incomplete without
reference to, and should be viewed solely in conjunction with, the oral briefing provided by the PRI. No reliance may be placed on its accuracy or completeness. Neither
the presentation, nor any of its contents, may be reproduced, or used for any other purpose, without the prior written consent of the PRI. PRI Association is incorporatedin England & Wales, registered number 7207947 and registered at 25 Camperdown Street, London E1 8DZ.

Contents
2023 Assessment Methodology

4Indicator types

5

Scoring styles

6

Scoring pathways

8

Multipliers: How the indicator scores are weighted

9Module-level assessment – Scoring

10

What asset owners should report on

11

What investment managers should report on

12

Example: Reporting for investment managers

14

Scoring thresholds

15

Resources

16

Appendix173

2023 Assessment Methodology
2021-23 Key changes
Indicator-level assessment

Module-level assessment

We changed the indicator-level assessment whereappropriate to align with updates to the Reporting
Framework indicators and to reflect changes in theresponsible investment industry.

The methodology for how indicator-levelassessment translates to module-level assessmentscores remains consistent with the 2021
methodology, including the scoring thresholds.

We have also clarified the wording of theassessment criteria for each indicator.

Assessment process
100 points/
question

0-100

Variable
multipliers
Low
ModerateHigh

Percentage*

Modulelevel stars

0-100%

1-5 stars*The percentage is based on the points scored in all applicable assessed indicators for each module. It is calculated as the total
points achieved divided by the total points available (only considering applicable indicators) in the module.

4

Indicator types
There are two types of indicators in the Reporting Framework.

▪ Assessed▪ Not assessed▪ Mandatory▪ Voluntary▪ Public▪ Public or private (signatories’choice)▪ Relatively stable▪ Evolving▪ Process-focused▪ Process and outcomes focused▪ Closed-ended▪ Closed- and open-ended

Only ‘core’ indicators are assessed but free-text responses in ’core’ indicators are not assessed as no qualitative data is
considered in the scoring.

5

Scoring styles

For each indicator, signatories can score from 0 to 100 points based on three main approaches:

Learning curve
More advanced practices are worth more points.

More is better
The more answer options selected; the more points scored.

Coverage and Frequency
In some instances, AUM coverage and/or frequency of a practice or conditions willcontribute to the points allocation.

See the Appendix for some practical scoring styles examples.

6

Scoring styles‘Other’ answeroptions

The ‘Other, please specify’ options may not receive a score, depending on
how well the remaining answer options within the indicator capture the mostrelevant practices.

‘N/A’ - notapplicable

The indicator or module is not applicable (not scored) when:▪ a signatory has no AUM within the asset class / sub-strategy, or▪ the indicator is not applicable in a particular signatory’s context.
Asset owners will receive a not applicable (N/A) score for all their internallymanaged AUM. See page 11 for further details.

‘N/R’ - notreported

If a signatory opts out of voluntarily reporting, the module is considered 'notreported' and therefore not scored.

When ESG is not incorporated into internally and/or externally managed asset classes, signatories will be penalised even when
opting out of voluntary reporting. Please refer to the pages 11 to 14 for more information.

7

Scoring pathways

Some indicators will only be applicable for reporting based on the response to previous indicators. In
such cases, where the score is also impacted by the responses provided in previous indicators, it means
there is a scoring pathway.

Scoring pathways can affect signatories’ scores, and indicators and modules may be penalised based on
the information disclosed in previous indicators. The full list of scoring pathways can be found in the
Logic Guide, available on the Investor Reporting Framework webpage.

Examples▪ Examples of scoring pathways impacting module scores can be found in pages
11 to 14 of this presentation.
▪ Scoring pathways are also outlined in each indicator’s assessment section in theReporting Framework. Example:

8

Multipliers: How the indicator scores are weighted
How the indicators scores are weighted.

Multipliers reflect an indicator’s relative importance with respect to responsible investment practices
and/or the PRI’s overall mission. Every assessed indicator has a multiplier that could be low, medium,or high.
To view them in advance, you can download individual modules via the Investor Reporting Framework
page.

Multipliers
available:

Low
ModerateHigh▪
▪

A multiplier is applied to every indicator’s score(0-100 points available).
The points resulting from the indicator scoresand multipliers are then used to calculate themodule score.

The numerical multipliers will be visible to signatories in the Reporting Tool and in their Assessment Reports.

9Module-level assessment – Scoring
Module scores are based on the total number of indicator points after multipliers have been applied.

Senior Leadership Statement (SLS)

Not scored

Organisational Overview (OO)
Sustainability Outcomes (SO)Module score

Policy, Governance and Strategy (PGS)
Confidence Building Measures (CBM)
Private equity (PE)

Asset class/substrategy score

Infrastructure (INF)

Real estate (RE)Manager Selection, Appointment & Monitoring (SAM)
Fixed income (FI)Listed equity (LE)Hedge funds (HF)

Signatories will not receive an overall organisation score.

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What asset owners should report on

INTERNALLY MANAGED ASSETS[OO 5]

EXTERNALLY MANAGED ASSETS[OO 5]NO ESG
INCORPORATION[OO 11]ESG INCORPORATION[OO 11]NO ESG
INCORPORATION[OO 12-OO 14]

NO REPORTING

NO REPORTING

NO REPORTING

ESG INCORPORATION[OO 12-OO 14]

ASSET CLASS < USD 10BN
AND <10% OF TOT AUM[OO 21]SCORE:NOT APPLICABLE (N/A)

SCORE:NOT APPLICABLE (N/A)

SCORE: 1 STARCHOOSE NOT TOREPORTASSET CLASS >= USD 10BN
OR >=10% OF TOT AUM[OO 21]CHOOSE TOREPORTSCORE:NOT REPORTED(NR)

APPLICABLE MODULES:OO | PGS | CBM

APPLICABLE MODULES:OO | PGS | CBM

APPLICABLE MODULES:OO | PGS | RELEVANT ASSET CLASS(ES) IN SAM
MODULE | CBM

Signatories will not receive an overall organisation score.

11What investment managers should report on

INTERNALLY MANAGED ASSETS[OO 5]NO
NO ESGESG
INCORPORA
INCORPORA
TION
TION [OO[OO 11]11]NO
REPORTINGSCORE:
1 STARESG
ESG INCORPORATIONINCORPORATION[OO[OO 11]11]
ASSET CLASS < USD 10BN
AND <10% OF TOT AUM[OO 21]CHOOSENOT TOREPORTASSET CLASS >= USD 10BN
OR >=10% OF TOT AUM[OO 21]CHOOSE TOREPORTNO SCORE(NR)

APPLICABLE MODULES:OO | PGS | CBM

EXTERNALLY MANAGED ASSETS[OO 5]NO ESG
INCORPORATION [OO12OO14]NOREPORTINGSCORE:1 STAR

ESG INCORPORATION[OO12-OO14]ASSET CLASS < USD 10BN
AND <10% OF TOT AUM[OO 21]CHOOSENOT TOREPORTASSET CLASS >= USD 10BN
OR >=10% OF TOT AUM[OO 21]CHOOSE TOREPORTNO SCORE(NR)

APPLICABLE MODULES:OO | PGS | RELEVANT ASSET CLASSMODULE(S) | CBM

APPLICABLE MODULES:OO | PGS | CBM

APPLICABLE MODULES:OO | PGS | RELEVANT ASSET CLASS(ES) IN
SAM MODULE | CBM

Signatories will not receive an overall organisation score.

12

What investment managers should report on (Fixed income)ASSET CLASS: FIXED INCOME

INTERNALLY MANAGED ASSETS [OO 05]
NO ESG
INCORPORATION[OO 11]NO REPORTINGSCORE:1 STAR

ESG INCORPORATION[OO 11]ASSET CLASS < USD 10BN
AND <10% OF TOT AUM[OO 21]CHOOSENOT TOREPORTCHOOSE TOREPORTASSET CLASS >= USD 10BN OR >=10% OF TOT AUM[OO 21]<10% IS REPORTED IN THE
RELEVANT ROW IN [OO 5.3 FI]

CHOOSENOT TOREPORTNO SCORE(NR)ASSET CLASS >= USD 10BN
AND >=10% OF TOT AUM[OO 21]>=10% IS REPORTED IN THE
RELEVANT ROW IN [OO 5.3 FI]

CHOOSE TOREPORTNO SCORE(NR)

APPLICABLE
MODULES:OO | PGS | CBM

APPLICABLE
MODULES:OO | PGS |CBMAPPLICABLE
MODULES:OO | PGS | FI| CBM

APPLICABLE
MODULES:OO | PGS |CBM

APPLICABLE
MODULES:OO | PGS | FI| CBM

APPLICABLE MODULES:OO | PGS | FI | CBM

APPLICABLE MODULES:OO | PGS | FI | CBM

Signatories will not receive an overall organisation score.

13

Example: Reporting for Investment managers
Example: a signatory holds < USD 10bn AND <10% of total AUM [OO 5] but does not incorporate ESG [OO 11] in
one asset class (e.g. Listed Equity).

ASSET CLASS: LISTED EQUITYINTERNALLY MANAGED [OO 05]

NO ESG
INCORPORATION[OO 11]NO REPORTINGSCORE:
1 STAR

Assessment
pathway used toscore thissignatory on theLE module.

ESG INCORPORATION[OO 11]ASSET CLASS < USD 10BN
AND <10% OF TOT AUM[OO 21]CHOOSENOT TOREPORTASSET CLASS >= USD 10BN
OR >=10% OF TOT AUM[OO 21]CHOOSE TOREPORTNO SCORE(NR)APPLICABLE MODULES:OO | PGS | CBM

APPLICABLE MODULES:OO | PGS | RELEVANT ASSET CLASSMODULE(S) | CBM

Signatories will not receive an overall organisation score.

14

Scoring thresholds
The number of stars signatories are allocated per module depends on the percentage score theyachieve. The 2023 scoring thresholds remain consistent with those used in 2021.

Do not do ESG or scored 0 ≤ 25 %> 25 ≤ 40 %> 40 ≤ 65 %> 65 ≤ 90 %> 90 ≤ 100 %Do not hold the asset class
Opted out of reporting

N/A – not applicable
N/R – not reported

Allocated per module/asset class/sub-strategy. There is no overall organisation score.

15

Resources
More information and resources about Reporting and Assessment is available at www.unpri.org/reporting.

▪

Find out more about PRI assessment on our webpage,
How investors are assessed on their reporting, includingguidance on how to publish your Assessment scores.

▪

See the Reporting Framework modules explanatory notes
for further details on the indicator level assessment
criteria.

16

Appendix

17

Indicator-level assessment criteria
The indicator-level assessment criteria is explained under each indicator in the Reporting Framework modules.

Assessment
Assessment
criteria“Other” scored as

Indicates the basis for assessment or “Not assessed”.

Indicates whether, and how, selecting “Other” as an answer option is scored.

All indicators have 100 points available to be scored.
Multiplier

A multiplier is then applied, weighted according to the indicator’s importance relative to otherindicators.

18

Indicator-level assessment: Example
Some indicators apply to different sub-strategies. Signatories can score from 0 to 100 points for the indicator, regardless of the number ofapplicable sub-strategies. Each sub-strategy will receive a separate score.

Allow multiple selection

Allow single selection

19

Indicator-level assessment: Example of scoring style
For learning curve indicators, more advanced practices are worth more points.

20

Indicator-level assessment: Example of scoring style
For more is better indicators, the more answer options selected, the more points scored.

21

Indicator-level assessment: Example with coverage
For indicators with coverage, the available 100 points are divided equally between answer options and coverage
selected.

22